The active mutual fund managers are quick to point out the truth about the equity markets; The Market will Recover. That is true, it will recover from this “crash” just like it has from the 11 crashes before this one. While that is true, fund managers want you to assume that your actively traded mutual fund will recover with the rest of the market. That is not necessarily true!

Remember all of the technology funds that existed in the late 90’s? Most are gone and their miserable track records were erased along with the fund. This year we are going to see that happen again with a host of active funds that were disproportionately weighted toward the financial stocks. Those funds are hurting more than the broad market and will not recover when the market rebounds.